Three-quarters of executives surveyed at the Insurance Information Institute's Property/Casualty Insurance Joint Industry Forum in New York said they expect an improvement in profitability in 2012.
III conducted the survey at the forum, held in New York on Jan. 10. More than 250 senior insurance executives and analysts attended the event.
Profits will improve in most P&C lines, according to the survey, with 63 percent agreeing there will be an improvement in auto lines and 67 percent expecting an uptick in profits in homeowners' lines.
More than 70 percent of the respondents expect an improvement in commercial lines, but 55 percent said not to look for any upgrade in the workers' compensation line.
More than two-thirds of P&C leaders expect higher premium growth in 2012. Just 2 percent thought premium growth will be negative this year.
Though 78 percent of respondents indicated the industry's combined ratio will be lower in 2012, not many felt that consolidation among insurers and reinsurers will be part of the reduction. More than 70 percent said they do not expect an increase in consolidation.
Just 19 percent said interest rates will rise in 2012 while 78 percent said interest rates will stay flat. Turning to the equity markets, 75 percent expect an up year.
Two-thirds of leaders taking the survey said it is too early to tell if the Federal Insurance Office is off to a good start.
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